Two years after the launch of Victoria’s Housing Statement, the push to build 800,000 new homes by 2034 is progressing, but serious challenges remain, particularly around collaboration with local government.
While 14 of the plan’s 34 actions are underway or complete, most current housing completions were initiated before the plan’s release. The construction rate must increase by 40 per cent to meet targets.
Local councils, responsible for the vast majority of planning decisions, have been sidelined from key reforms. Major system changes have been introduced without consultation, disrupting planning processes, delaying projects, and eroding community trust.
The Municipal Association of Victoria (MAV) is calling for:
- A genuine State-Local Government partnership on planning reform
- Proper regulatory impact assessment before new rules are introduced
- An independent planning system advisory body to prevent policy missteps and ensure continuous improvement
Councils are also leading innovation through the Local Government Housing Innovation Program, exploring AI in planning, public land reuse, and community engagement strategies.
MAV President, Jennifer Anderson, said that the housing crisis calls for bold leadership and new public policy approaches.
“It calls for more cooperation between levels of government,” Cr Anderson said.
“The two-year anniversary of Victoria’s Housing Statement is an important opportunity to take stock and consider better ways that State and Local Government – with communities – can work together to enable the high quality, affordable housing Victorians need.
“The housing crisis is about much more than planning approvals. New homes need new infrastructure. Financial barriers, labour shortages and rising construction costs mean it’s often cheaper to buy an existing dwelling than build a new one. Faster planning decisions alone won’t see more homes being built.
“Victoria’s councils understand this, as our communities feel the effects of delayed infrastructure and the lack of affordable homes in our communities.”
Cr Anderson said that the MAV have led the call for comprehensive planning reform as one important lever for distributing, enabling and incentivising affordable housing supply.
“Local government is uniquely placed to lead local communities through change, bring together experts and community voices to design and construct great places, and support the rapid approval of well-located homes near jobs and transport.
“This value is not always understood by other levels of government, especially in the context of fast top-down reform. But when we all pull together, we can achieve a lot. Councils are powerful facilitators of transformative change in local communities.
“We need that transformative change if we are going to rise to meet the housing challenges of the day, while meeting another formidable challenge – preparing our built environment for more severe heatwaves, fires and floods.
“Without a joined-up approach, reform will continue to be done to councils and communities, not with them, and government risks losing the social licence for transformative change.
“To achieve genuine, community acceptance for transformative change in our planning and housing system, local government needs a seat at the reform table.
“It won’t be simple, but Victoria can achieve the Housing Statement target of 800,000 new homes by 2034. Let’s make sure that those homes and every community are great places to live.”
